Procurement

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Proposed Loan: Kunming Qingshuihai Water Supply Project

The People's Republic of China has applied for a loan from ADB to finance the cost of the Kunming Qingshuihai Water Supply Project. The loan is expected to be approved in December 2007.

The Project supports the Government's 11th Five Year Program (2006-2010) to improve the living conditions and health in the cities of PRC, and to promote their sustainable economic development. The Project will contribute to achieving Millennium Development Goal (MDG) 7, Target 10, which calls for halving by 2015 the proportion of people without access to safe drinking water and basic sanitation. The Project is consistent with ADB's Water Policy.

The Project is a key urban infrastructure initiative of the Kunming Municipal Government (KMG) and will provide safe, secure water supply, and ensure sustainable economic growth of the city of Kunming. The Project will help Kunming to:

• ensure better raw water quantity and quality in the main city and the new development zones;
• protect water resources;
• encourage more effective water demand management;
• strengthen integrated water resources development and environmental management;
• improve the environment, living conditions, and public health standards; and
• ensure effective corporate governance and enterprise reform to improve sector efficiency.

The Project consists of three components:

• water resources development,
• water conveyance systems, and
• capacity development and project management.

Water Resources Development. This component will increase water inflow to and perennial storage in the existing natural Qingshuihai water storage and distribution facilities (34 km²). Transit dams and reservoirs will be constructed to store water in Qingshuihai reservoir from the four surrounding catchments temporarily (Banqiaohe, Shiqiaohe, Xintianhe, and Tabizi Longtan Springs). From Qingshuihai, water will be transferred as a steady flow to Jinzhongshan reservoir. With the Project, the quality of raw water will be maintained at class II and will serve about 30% of domestic water and other nonindustrial demands in Kunming in 2012; a sustained level of 24-hour water service and quality, and prevention of subsequent shortages in Kunming urban area as demand increases; and improved overall public satisfaction with water supply services.

Water Conveyance Systems. This component will take water from Qingshuihai under gravity which is energy efficient, to NADZ and Kunming through Jinzhongshan water storage and distribution facilities, and to the EDZ through Songhuaba Reservoir. The conveyance works which is about 72.8 kms comprise: (i) 12.53 km of tunnel and other structures between Shiqiaohe reservoir to Qingshuihai; (ii) 4.0 km of tunnel and other structures between Banqiaohe reservoir to Qingshuihai; (iii) 50.78 km of tunnel and other structures from Qingshuihai to Jinzhongshan, with 43.1 km to Tongxin Gate (where the flow can be divided or directed to either Jinzhongshan and/or Songhuaba reservoirs) and 6.9 km from Tongxin Gate to Jinzhongshan; and (iv) rehabilitation of 5.7 km of channel from Tabizi Longtan to Qingshuihai.

The Project will also provide institutional capacity building measures in project management and construction supervision; (ii) improvement of financial management and setup of project performance management system; (iii) safeguards management and monitoring; (iv) corporate and business planning; (v) tariff review; (vi) dam and reservoir management, safety, and operation; (vii) online water quality monitoring; and (viii) development of public awareness training on water demand measures and social impact monitoring.

Procurement

Goods and works will be procured in accordance with ADB's Procurement Guidelines(2007, as amended from time to time). Contracts for goods estimated to exceed $1.0 million and contracts for works estimated to exceed $10.0 million will be procured using international competitive bidding (ICB) procedures. Contracts for goods and contracts for works estimated to cost equal or less than the ICB values, but more than $100,000, will be procured using national competitive bidding procedures in accordance with the PRC Tendering and Bidding Law, 1999, including modifications agreed with ADB. Contracts for goods and works estimated to cost $100,000 or less will be procured using shopping procedures.

Consulting Services

Provision has been made for about 18 person-months of international and 72 person-months of national consulting services, to be funded under the Project to support the PMO and implementing agency in project implementation and capacity development. A consulting firm will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). The consulting firm will be selected in accordance with the quality and cost-based selection method using full technical proposal procedures. A fixed quality-cost ratio of 80:20 will be applied.

The consulting services will cover:

• project management and construction supervision;
• improvement of financial management and setup of project performance management system;
• safeguards management and monitoring;
• corporate and business planning;
• tariff review;
• dam and reservoir management, safety, and operation;
• online water quality monitoring; and
• development of public awareness training on water demand measures and social impact monitoring.

Interested bidders from ADB's member countries who wish to obtain additional information may contact:

Kunming Municipal Government
Contact: Mr. Zhu Yuan Feng, Vice Leader for Engineering
No. 626 Beijing Road, Kunming Fax No.: +871 3166755
Tel No.: +871 5615220 / +871 3166755
Email: zhangzhu@public.km.yn.cn

General Procurement Notice